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Bombay (Maharashtra) [India]Sep 14 (ANI/ATK): An addition of Rs 2,000.00 per MT to the cost of HRC in recent times is cause for celebration in the I&S industry which has seen prices drop as low as Rs 55,000.00 on the domestic market, a far cry from the high of Rs 75000.00 offered in the international market as recently as March 2022 before the Indian government introduced export duties to stem exports in favor of domestic industries.
Local industries, including infrastructure, need HRC in some form for their growth to justify the GOI. And this despite the fact that international markets are lucrative at present and Europe is on the alert with its steel mills disconnected from the grid in the absence of Russian gas to heat the furnaces in addition to other activities. .
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A glut in the local market due to the turn of events, along with sluggish demand from the industry (an overflow from the covid-induced lockdown), is seeing stocks pile up at producers. These factors have driven down the prices of various forms of steel including HRC to as low as Rs 50,000.00 to 55,000.00.
That said, Indian industries including automotive, FMCG and infrastructure see it as an opportunity to buy raw materials at competitive prices and could be the reason for the jump of Rs 2000.00 PMT. According to Steel Expert Vedant Goel of NEO Mega Steel, this development could be called a “silver lining” for the Indian steel industry and would be most visible during the Diwali era with record sales by automakers and FMCGs. “This development would have a positive impact as FMCG auto companies have been going through tough times over the past couple of years, such HRC awards were needed to ramp up production in anticipation of the good times ahead /bumber Diwali,” says- he.
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It is also a very important and positive step for the infrastructure sector as India builds its infrastructure, whether it is world-class multi-lane express highways, long tunnels, complexes such as bridges and culverts, and today even skyscrapers, adds a steel expert. Vedant Goel from Neo Mega Steel.
As for the steel producers themselves, authoritative sources in the sector indicate that the government has made it clear that this, i.e. taxing steel exports, is something it would reconsider depending on the interests of stakeholders, both producers and users in the country and in the world.
From a macro point of view, India is among the few steel exporters that have all the advantages, from the best mines to the large, mature and sustainable domestic markets, to the best smelters and steel mills. Today he has an international scenario added to his list of positives with steel units in Europe closing workshops in the absence of gas to fuel their furnaces that came from Russia some time ago.
This story was provided by ATK. ANI shall in no way be responsible for the content of this article. (ANI/ATQ)
(This is an unedited and auto-generated story from syndicated newsfeed, LatestLY staff may not have edited or edited the body of the content)
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